HOTEL STOCKS - Is NOW the Time To Invest?

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MUST READS FOR VALUE INVESTORS

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Invested - Danielle Town and Phil Town (Great introduction to value investing)
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Rich Dad, Poor Dad - Robert Kiyosaki (Mindset and Motivation)
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The Barefoot Investor - Scott Pape (Day to Day Financial Planning)
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One Up On Wall Street - Peter Lynch (Full of Gold)
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Great For Getting Deeper into Investing.

The Little Book of Common Sense Investing - Jack C. Bogle (Index Strategy)
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The Little Book The STILL Beats the Market - Joel Greenblatt (Simple Strategy)
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The Acquirer’s Multiple - Tobias E Carlisle (Simple Strategy)
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The Dhandho Investor - Mohnish Pabrai (My Favorite Investor)
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100 Baggers - Christopher Mayer (My Favorite Book)
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The Education of a Value Investor - Guy Spier (Advanced Mindset for Serious Investors)
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Will hotel stocks ever be the same again? When everyone is talking about airlines and cruise ships, hotels are empty across the world. Are they doomed or will some survive and then dominate the industry? Let’s go take a look…
If you are new to my channel, welcome, my video’s are about investments that anyone in the world can make. And today we will investigate the giant hotel industry.

And what I am really trying to do is change how most investors think, especially in the stock market.
People do far more research buying a computer or phone than they do buying shares in a company.
I’ll take a good hard look under the covers of the company, to make sure we are not buying a dirty mattress. And hopefully this will save you a lot of time in your own research.

I bet people have bought airline shares thinking they will bounce back, but what about the Hotel stocks? Where is the love?

When people start travelling again and the world goes back to normal, it will be interesting to see what happens with hotels.
My initial thought would be that holiday travel will recover eventually. So hotels and resorts at holiday destinations will get back on their feet. I have no idea when, but I assume these places will offer some really good deals to encourage people to travel again. So for those of you looking for more affordable holiday to Italy, well it might be a great time to get a bargain.

Although I think holiday travel will be ok medium term, I don’t know about business travel. Actually I would assume business travel will be less. So Hotels that rely on mostly business travellers, well that might seriously change.

On average, 40% of hotel customers are business travellers. And the most popular hotels for business travellers are,

Marriott,
Holiday Inn,
Hilton,
Doubletree
Hyatt.

Another interesting trend in the business travel word is that over 1 million companies are using Airbnb for work travel. And this is growing faster than the industry. So Airbnb is taking serious market share away from the big hotels prior to 2020.

So there are a lot of serious challenges facing the big hotels.

So before I get to the financials of some of the big hotel stocks, I will make a couple of assumptions.
I assume the most recent financials are going to look very ugly. Most likely there will be losses. Which totally makes sense.
Just because there are serious issues in the industry, doesn’t mean it is totally un-investable.

We are going to go through the Hyatt, Hilton and Marriott because these are the big three with an international presence.
There are many other hotel chains, but I thought i’d focus on these 3 because they are the most recognisable brands, with the largest asset base.
I think we should stop now, no real point going any further.
Just for interest sake, i want to see if the share price is severely undervalued,

I hope you enjoyed that analysis, it’s not always Blue sky’s and rainbows, actually I’ll Deny far more companies than I Approve.
But that’s how we get the best deal.

So to summarise, Hyatt is better positioned than the Hilton and the Marriott, but not a good investment for us long term value investors. We’ll find some great companies that will be far better for an investment.

Remember if you want that spreadsheet that I did to find the value of Hyatt, download that in the link below.

So stayed tuned for more video’s where I hope we can uncover a hidden gem or two.

Hit subscribe if enjoy my analyses and see you in the next video.

Видео HOTEL STOCKS - Is NOW the Time To Invest? канала Andrew Brown